New Delhi: India's defence capital expenditure is projected to grow at an 11 percent compound annual growth rate (CAGR) over FY2026-30E to reach Rs 2.8 trillion. This structural upcycle is supported by policy measures like positive indigenisation lists and the Defence Acquisition Procedure 2020, which mandate more than 50 percent indigenous content.
According to a report by Kotak Institutional Equities, Indian defence exports grew 50X over the past decade, driven by cost-competitive indigenous platforms, proven combat performance in Operation Sindoor, and the easing of export controls.
